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The easiest way to calculate the value of a cash annuity would be to use an online annuity calculator. Some companies that feature this type of calculator on their website include Investopedia, Pine Grove, and Bank Rate.
Initial Net Investment / (Annual expected cash flow + salvage value)
The face value is what your beneficiaries will collect. The cash value is the excess of your premium payments over the cost of the insurance. Click here for more about life insurance cash value.
$1400.00 cash $1400.00 cash
The present value of future cash flows is inversely related to the interest rate.